There weren't high oil prices in 2000 because there wasn't global demand for oil.
Oil is skyrocketing because we are consuming more oil than producing. On a daily basis.
I won't deny that there's a commodities bubble going on right now. But it's not just hedge funds. You have new ETFs opening up for individual investors that grant exposure to other asset classes, which isn't necessarily a bad thing but it's giving the smart money the opportunity to bail before the pop.
Bubbles happen. It's part of the market. Regulation or not, they will still occur.
"Oil is skyrocketing because we are consuming more oil than producing. On a daily basis."
Oil has been fluctuating by as much as 10% per barrel in a single day. That's not due to changing global demand. Global demand for oil can't even be measured that precisely.
Right now, the oil futures market is overreacting to everything -- up to and including speculation that the market might overreact next week. The overall trend is correct, but there's no rational argument for the ~$50 gain per barrel we've seen since the beginning of the year.
Oil is skyrocketing because we are consuming more oil than producing. On a daily basis.
I won't deny that there's a commodities bubble going on right now. But it's not just hedge funds. You have new ETFs opening up for individual investors that grant exposure to other asset classes, which isn't necessarily a bad thing but it's giving the smart money the opportunity to bail before the pop.
Bubbles happen. It's part of the market. Regulation or not, they will still occur.